MAMC factory at Durgapur may re-open soon

Mining & Allied Machinery Corporation (MAMC) – the first heavy machinery manufacturing PSU in the country was once the pride of Durgapur. Set up in 1965 with Soviet co-operation to make equipment for various mining industries, it slipped into the red and was referred to the BIFR in 1992. On 5th October 2005 decision of shutting down MAMC was officially taken.

BEML - major stake holder of Consortium

Initiative by the former Left Front government saw the formation of a consortium of Coal India (CIL), Damodar Valley Corporation (DVC) and Bharat Earth Movers (BEML) which took over MAMC in June 2010 by giving the highest bid of 100 crore. With a 48 per cent shareholding, BEML will have management control of MAMC, while DVC and CIL will have a 26 per cent stake each.
Even former Chief Minister of West Bengal, Mr. Buddhadev Bhattacharya took direct interest in opening this unit of Durgapur by the earliest. But after that almost seven months have elapsed, but no concrete step has been taken so that production may start at the Durgapur unit of MAMC. The revival plan was put on the back burner for two years since 2010 because the JV Company was facing problems on two fronts – getting more land from the government on lease and assured orders from CIL and DVC, to make the project viable.
Partha Chatterjee addressing media about MAMC

But a recent development has once again brightened up the prospect of MAMC. Present Industry Minister, Partha Chatterjee after a meeting with V.R.S. Natarajan, chairman and managing director of BEML Ltd. on Tuesday said that the state government is hopeful to restart production in the mining firm by the earliest. “The government will provide all the support. We have urged them (DVC, Coal India and BEML) to sign immediately the shareholding agreement,” Chatterjee told media persons. “The decision of the boards (of the three state-run companies) will come out in a few days,” Chatterjee added.
The DVC-CIL-BEML consortium recently paid Rs.1 billion for taking over the assets of MAMC. The consortium of BEML, CIL and DVC took over the MAMC to manufacture mining equipment for their own needs. The BEML, CIL and DVC will pump in close to Rs 150 crore, Rs 75 crore and Rs 75 crore respectively as their equity contribution in the MAMC.
On Tuesday, the BEML CMD asked for another 100 acres from the state government on lease to suit the company’s business plans. The 100 acres of land include Hospital, officers’ quarters and township will be built on that 100 acres on the erstwhile MAMC compound that is now under the Asansol Durgapur Development Authority (ADDA).
“The task is less easy than said. There are legal disputes over this proposed land. They have to be sorted out through talks. But before that the company has to send copies of the board resolution to the government over the share holding agreement,” the industry minister said.
Wheather, MAMC unit of Durgapur will finally open up and production will start is a matter to be seen. But the present government is very much keen to take further forward the initiative taken up the earlier Left Front government and bring joy to the people of Durgapur and Bengal as well.

Related Posts Plugin for WordPress, Blogger...

3 Comments on MAMC factory at Durgapur may re-open soon

  1. Reopen mamc plant as soon as possible it is of the only plant for mining machinery in the world where raw materials to finish goods is produced this type does not exist even in Russia


Leave a Reply

Your email address will not be published.